ap doing eap authentication using routerboard radius

I am experiencing issues while trying to configure the radius server (usermanager) on my rb532 running RouterOS 5.23

My setup is:
Proxim ap700 configured with WPA 802.11i and radius EAP authentication using the rb532’s ip address.
My rb532 is loaded with the usermanager package and this relevant parts of configuration:

/radius
add accounting-backup=no accounting-port=1813 address=192.168.33.235 authentication-port=1812 called-id="" disabled=no domain="" realm="" secret=testing service=ppp,login,hotspot,wireless,dhcp timeout=300ms
/tool user-manager customer
add backup-allowed=yes disabled=no login=admin password=barf paypal-accept-pending=no paypal-allowed=no paypal-secure-response=no permissions=owner signup-allowed=no time-zone=-00:00
/tool user-manager profile
add name=default name-for-users="" override-shared-users=unlimited owner=admin price=0 starts-at=now validity=0s
/tool user-manager router
add coa-port=1700 customer=admin disabled=no ip-address=192.168.33.95 log=auth-ok,auth-fail,acct-ok,acct-fail name=ap700 shared-secret=testing use-coa=no
/tool user-manager user
add caller-id=bind customer=admin disabled=no name=fred password=barf shared-users=unlimited wireless-enc-algo=none wireless-enc-key="" wireless-psk=""
add customer=admin disabled=no name=fred2 password=barf shared-users=unlimited wireless-enc-algo=tkip wireless-enc-key="" wireless-psk=""

Upon connecting to the ssid my log file gives:

customer=admin user-orig=“fred” nas-port=2 nas-port-type=wireless-802.11
calling-station-id=“xx-xx-xx-76-a6-8c” host-ip=192.168.33.95
status=authorization-failure time=feb/19/2013 22:20:01
description=“unknown authentication algorithm for user ”

I hope this is going to work, I just blew the dust of the box a few days ago and bought a license to upgrade to a version supporting usermanager.
Thanks in advance for your thoughts.